Market Update 21st August 2019

USE ALSI Close: 1,589.15 Previous: 1,590.90 (DOWN: 2.69%YTD) - USD/UGX: 3,688.25 Previous: 3,698.67 (UP: 0.50%YTD)

USE ALSI* Key Statistics: Close 1,589.15 Market Synopsis: 1D* % Change (0.11) Market turnover sharply reduced to Ugx2.35Mn ($634) from yesterday’s Ugx5.11Mn MTD* % Change (1.76) ($1,385). Four counters posted activities and 44,804 shares were exchanged during the YTD* % Change (2.69) day. Stanbic Holdings traded shares worth Ugx1.14Mn, dealt 52 Week Range 1,589.15–2,085.37 Ugx0.95Mn whereas Bank of Baroda Uganda and CiplaQCIL made a combined Volume 44,804 Ugx0.26Mn in turnover. SBU share price closed at Ugx28.87, UMEM at Ugx297, Turnover (ugx) 2.35Mn ($638) CQCIL at Ugx130 and BOBU at Ugx127.81. The USE All Share Index (ALSI) and PE 22.43 Crested’s Local Companies Index (C9) closed at 1,589.15 and 130.45 respectively. EPS 72.96 Headlines: Dividend Yield 5.4% Umeme, ERA seek middle ground over six year target: With Uganda increasingly Market Cap (Ugx) 22,196.36Bn ($6,018.13Mn) producing more electricity, Umeme Limited has asked the sector’s regulatory Authority

USE ALSI*- USE All Share Index, 1D*- One Day, MTD*- Month to Date, YTD*- Year to Date to reconsider some of the targets its sets for it for the next six years, arguing that it Source: Uganda Securities Exchange, Blomberg needs more boots on the ground to evacuate the power from the generations units into 2,200 people’s premises. At a recent public hearing at Imperial Royale Hotel, over the set performance targets for Umeme Limited, Selestino Babungi, the managing Director of 2,150 USE ALSI INDEX - 12 months Umeme limited, said the company needs to invest more money if more Ugandans are 2,100 to be connected to the grid. “We cannot deliver more connections with limited 2,050 resources to evacuate that power,” Babungi explained. For more than a year , Umeme Limited and Electricity Regulatory Authority (ERA) have failed to agree on some of 2,000 the performance targets, especially the amount of money the utility firm has to invest 1,950 over the next six years- the latest leg for the utility company before its current concession runs out in 2025. After months of review, ERA in early April released the 1,900 new parameters for Umeme. The numbers, according to Umeme. Umeme appealed for 1,850 a review, which was duly granted. On one hand, Umeme says it needs to invest more 1,800 money to connect more people and offer a quality service with a top-notch network. It then would recoup this money through the electricity tariff, which is supposed to be 1,750 approved by ERA. (The Observer) 1,700 Technology to help curb fraud in banks: The Deputy Governor of the Bank of 1,650 Tanzania Dr Bernard Kibesse is rooting for security and privacy of customer information. Dr Kibesse wants the banking industry to utilise the technology at their 1,600 disposal to secure customers’ trust. He was addressing middle and senior level cadres 1,550 in the financial services sector, academia, government and regulatory bodies from six countries gathered in Arusha to discuss ethics and best practices in digital banking and 1,500 finance. “Trust is the central ethical pillar for financial service professionals. Much as we handle the money belonging to other people, we must earn their trust,” he said. The annual forum—19th East African Banking School—which seeks to address emerging challenges and opportunities for fintech was organised by bankers of Kenya, Tanzania and Uganda. Experts from Nigeria, India and the US were in attendance. While East Source: Uganda Securities Exchange Africans have been sending and receiving money and loans instantly courtesy of new Crested 9 Price Snapshot: and radical transformations in financial services, the executive director of the Tanzania Close 52 Week Range YTD % Ch. Institute of Bankers Patrick Mususa warned of emerging challenges brought by the innovations. He cited fraud and lack of laws and regulations to control vices. Gilbert C9 130.45 127.41– 158.15 (10.28) Om’mbongo, the acting chief executive of Kenya Institute of Bankers, said the basis BATU 30,000 30,000 – 30,000 0.00 for embracing technology should be trust and integrity. “If the systems perform well, BOBU 127.81 120 – 145 (8.71) our economies will also grow,” he added. He said Kenya witnessing cyber crime where DFCU 650 650 – 950 (21.02) bank staff conspire with con artists. But by using digital and agent channels to move CQCIL 130.00 130–262 (31.58) customers out of banking halls, banks have extended alternative channels, downsized NIC 12.50 12.50–17.20 (10.71) branch networks and capacity, thereby eliminating some services from the halls. Some NVL 325 325 – 450 (4.09) of this technology has, however, also introduced some disruptions in the financial SBU 28.87 28.09– 33.00 (6.87) services, sector such as staff reassignment and redundancy. (Business Daily) UCL 14.00 13.02– 25.00 (26.32) Forex Outlook: The Ugandan shilling was a touch stronger on Wednesday on the back UMEM 297.00 292.05-350.00 (7.19) of hard currency inflows from exporters of coffee and other commodities. The shilling *C9 is Crested 9 Local companies Index was quoted at 3,688/3,698. (Reuters) Regional Counters: Macro Indicators: Close 52 Week Range YTD % Ch. (%) Period NSE 20 2,501.18 2,501.18– 3,336.06 (10.37) Inflation (Year on Year) 2.60 Ended July 2019 BRITAM (Kshs) 6.92 6.92– 14.50 (28.80) Central Bank Rate (CBR) 10.0 15/08/19 SAF (Kshs) 29.30 21.30–29.75 26.13 Bank Rate 15.0 15/08/19 KA (Kshs) 2.73 2.73– 12.79 (67.97) 91-day T-Bill 9.74 24/07/19 NSE (Kshs) 11.00 10.95 – 17.90 (17.34) 182-day T-Bill 10.80 24/07/19 BRL (Rwf) 140 140– 150 (6.67) 364-day T-Bill 11.43 24/07/19 BOK (Rwf) 265 265 – 290 (4.68) CTL (Rwf) 50 50 – 55 (5.66) Forex Close Prev. YTD % Ch. Sources: Crested Research, Uganda Securities Exchange, Nairobi Securities Exchange, GBP/UGX 4,475.49 4,481.02 4.73 Rwanda Securities Exchange, , Bloomberg EUR/UGX 4,092.60 4,097.81 3.34 KEN/UGX 35.84 35.70 1.87 CRESTEDCAPITAL RESEARCH CONTACT TZS/UGX 1.60 1.61 0.00 Impala House 1st Floor, Plot 13/15 Kimathi Avenue Hotline: +256 414 230900 RWF/UGX 4.12 4.12 3.51 @: [email protected], W: www.crestedcapital.com

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